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South Korean Fabless FADU details shift to Data Center Specialist with PMIC Mass Production and Reduced CXL Investment
Thursday, December 4, 2025 at 10:13 AM
South Korean fabless FADU outlined a strategy to focus on the data center market, anchored by its existing SSD controller business and new Power Management IC (PMIC) line, which has already entered mass production for global customers. The company is developing a next-gen PCIe Gen6 SSD controller but is reducing investment in CXL switch development through its subsidiary and has no concrete plans for High Bandwidth Flash (HBF) development.
Context
FADU, a South Korean fabless company, is strategically pivoting to become a data center semiconductor specialist, emphasizing SSD controllers and Power Management ICs (PMICs). This shift aims to address AI-era storage bottlenecks with a next-generation PCIe Gen6 SSD controller targeting 100 million IOPS, while PMICs for SSDs are already in mass production for global customers, and DRAM PMICs are set to launch early next year. This move underscores FADU's commitment to improving data center power efficiency and reducing total cost of ownership.
Conversely, FADU is significantly scaling back investments in Compute Express Link (CXL) and High Bandwidth Flash (HBF). The CXL subsidiary, EEUM, faces financial challenges with a KRW 2.1 billion quarterly loss and only KRW 4 billion in remaining assets, indicating a need for fundraising by H1 next year. Development for CXL is now limited to FPGA-based Proof of Concept, and HBF has been deprioritized due to technical hurdles and lack of interest from key players like NVIDIA. This strategic adjustment allows FADU to reallocate resources to more promising ventures.
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